Scesnick,
If the houses are in decent shape, I say go for it. Student housing can be a nice investment if you go into it with your eyes open.
I would forget any idea of managing the property yourself (unless you are really into that sort of thing) and just be the owner/investor. Get a property management company to do this for you. They will usually take about 7 to 12% of the monthly rent as their fee, but are worth it since they are the ones who will get called in the middle of the night, collect rent, perform background checks, etc, etc, etc.
Girls will take better care of the property, but will also call more often for fixes, repairs, etc. Boys will usually do more damage to the place, but rarely call unless something is seriously wrong.
Think about offering a discount on total rent if the students rent it for the entire year ( I would not want to do semester rents - it will only double the number of times you have to inspect and ready the place for new renters).
Have the parents sign the lease. Also, be specific on what is and is not "normal wear and tear" in your lease documents. You want to have your lease make the security deposits cover most everything that needs to be repaired or fixed.
Attach and reference "current condition" photos to your lease document. This goes a long way in providing proof of damage at the end of the year/semester.
Decide up front on your position about pets (usually will do less damage than the students) and the ability for your students to sub-lease.
Be realistic on the amount of damage that will be done yearly. Most of this will usually be cosmetic, but students will do a number on carpet, paint and drywall. Run your numbers with carpet having to be replaced every three years, yearly (or every semester) paint, extermination fees, window glass replacement, etc. (shower rods and towel racks always seem to get torn off the wall during a party).
Check the location of the properties in relation to the school. Walking distance will command more rent vs one that is several miles away. Is it in a location that students want to live/etc. (Are their other student houses in the neighborhood or just these two houses full of students).
Hope the above helps - Just some random thoughts.
If you are honest about what could happen in a worst case scenario - you can establish some nice cash flow from student housing. I would also have a general plan on how long you want to hold the properties. It does not have to be exact, but it helps determine your objectives and establishes future decisions on what you invest back into the houses.
The reason being, puke is easier to clean up right away than it is to remove the stains and the smell at a later date.
